There is More Than One Way to Skin the Cat. Here are some examples of ways to purchase the business you want:
- Stocks and Bonds.
- Certificates of Deposit.
- Gifts/Loans from family and friends.
- Second mortgages and other real estate loans.
- Seller financing.
- Credit card financing.
- SBA Financing/bank loans/bank lines of credit.
- Retirement Accounts.
- Borrowing against a different existing business.
- Asset sales.
- Customer and supplier financing.
- Venture capital.
- Small business investment companies.
- Private placement.
- Convertible debt financing.
USE 401K/IRA’S TO BUY A BUSINESS
Clarification of Self Directed Retirement Plans
There is a lot is misinformation regarding the use of 401K/IRA funds to buy businesses. Since 1999, many people have availed themselves of these programs. It appears that there are a lot of predators out there offering substandard programs. We thought it a good idea to provide some simple straight talk about the plans and provide a few resources.
Ö Most businesses/franchises qualify for the use of funds.
Ö There is no penalty for transferring or using your funds if done correctly.
Ö Your basis remains intact which is great for today's environment.
Ö You may even secure a "favorable ruling" by the IRS, documenting the validity of your transaction.